Bitcoin gains 5% to $62k as US jobs data boosts devaluation bets
Bitcoin (BTC) gained as much as 5% on May 3 as U.S. employment data provided a strong risk-asset boost.
BTC Price: “Bad News Is Good News”
Data from Cointelegraph Markets Pro and TradingView tracked BTC price movement past $62,000 on Bitstamp.
US non-farm payrolls data for April came in below expectations, suggesting some weakness in the labor market that the Federal Reserve said would strengthen its case for cutting interest rates.
“We are prepared to maintain the current level of the federal funds rate as long as necessary,” Fed Chairman Jerome Powell said during a press conference on May 1.
“We are also prepared to respond to the unexpected weakness in the labor market.”
Non-farm payrolls contrasted with other recent macro data releases, which served to erode bulls' confidence.
Stocks were immediately relieved, with Dow Jones futures rising 500 points.
Responding, marketing materials Kobe's letter, however, questioned how the Fed would handle inflation issues going forward.
“Now we have a weak labor market, low GDP growth and rising inflation,” he said on X (formerly Twitter).
“How is that a ‘soft landing'?”
The latest estimates from CME Group's FedWatch Tool put the odds of a rate cut at the June meeting of the Federal Open Market Committee, or FOMC, at less than 15 percent. The odds for the July meeting were 33% with a slight 0.25% decline.
Bitcoin is “entering a new era” as whales buy it.
Reacting to the new BTC price spike, commentators were hoping higher levels would hold as support, leaving the week's trip to two-month lows as a bullish reaction.
Related: Why is the crypto market booming today?
A well-known trader and analyst, Rect Capital, wrote on X-Post: “This seems to be only the downside.”
“A weekly close just confirms that such a pool of liquidity is safe support.”
In a separate post, Rect Capital added that BTC/USD has moved out of the “danger zone”, an event where the block grant will be halved almost every time.
As Cointelegraph reports, Bitcoin initially had problems retrieving $60,000, with the surrounding area being where key bull market support trends lie.
“Watching this level at $62k to see if Bitcoin can recover,” Josh Rager continued.
“Historically over the past year, Bitcoin has a habit of breaking below support on high timeframes and recovering soon after.”
Revealing whaling behavior in recent days, meanwhile, Ki Yang Ju, founder of LaChain Analytics, said the sub-$60,000 position was popular for “buying the dip.”
“Bitcoin whales have accumulated 47K $BTC in the last 24 hours,” he commented, along with a chart of active whale addresses.
“We are entering a new era.”
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
